The worldwide smartphone market suffered a flat growth rate in Q1 2016, according to new data released by research firm IDC. The flat growth rate is the result of smartphone saturation in developed markets along with decline in shipments from both Apple and Samsung. Moreover at 0.2 per cent, Q1

The worldwide smartphone market suffered a flat growth rate in Q1 2016, according to new data released by research firm IDC. The flat growth rate is the result of smartphone saturation in developed markets along with decline in shipments from both Apple and Samsung. Moreover at 0.2 per cent, Q1 2016 marks the smallest year-over-year growth of the global smartphone market on record.

Interestingly, 'lesser-known' Chinese brands Oppo and Vivo have usurped Lenovo and Xiaomi from the fourth and fifth poistion, making it to the list of top five smartphone vendors in the world, for the first time. Huawei meanwhile continued its top form courtesy its popular Nexus 6P, and occupied the third place. The first and second positions were held by Samsung and Apple respectively.

The fact that Lenovo and Xiaomi are now out of the top five vendor list goes on to show that customer loyalty is hard to maintain for newer players, according to IDC.

"Lenovo benefited with ASPs below US$150 in 2013, and Xiaomi picked up the mantle with ASPs below US$200 in 2014 and 2015. Now Huawei, Oppo, and Vivo, which play mainly in the sub-US$250 range, are positioned for a strong 2016," said Melissa Chau, senior research manager with IDC. "These new vendors would be well-advised not to rest on their laurels though, as this dynamic smartphone landscape has shown to even cult brands like Xiaomi that customer loyalty is difficult to consistently maintain," she added.

The fact that the Galaxy S7 and S7 Edge were sold vigorously in the month of March helped Samsung top the list. Meanwhile, its affordable J series has helped it win "both budget conscious consumers and first-time buyers."

Cupertino major Apple on the other hand faced its "first-ever year-over-year decline in the first quarter," mostly because owners of the iPhone 6, 6 Plus have not felt the need to upgrade to the new 6S series, something that even Apple has acknowledged. Also, as a cautionary note, IDC has said that the $399 price tag of the iPhone SE wont help it win especially in India and China. Ironically, the iPhone SE was primarily intended for India and China.

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